Correlation Between Global X and IShares MSCI

Can any of the company-specific risk be diversified away by investing in both Global X and IShares MSCI at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Global X and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global X Conscious and iShares MSCI All, you can compare the effects of market volatilities on Global X and IShares MSCI and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Global X with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and IShares MSCI.

Diversification Opportunities for Global X and IShares MSCI

0.95

Correlation Coefficient

Global X  IShares MSCI

Almost no diversification

The 3 months correlation between Global and IShares is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Global X Conscious and iShares MSCI All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI All and Global X is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Global X Conscious are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI All has no effect on the direction of Global X i.e., Global X and IShares MSCI go up and down completely randomly.

Pair Corralation between Global X and IShares MSCI

Given the investment horizon of 90 days Global X is expected to generate 1.01 times less return on investment than IShares MSCI. In addition to that, Global X is 1.01 times more volatile than iShares MSCI All. It trades about 0.22 of its total potential returns per unit of risk. iShares MSCI All is currently generating about 0.22 per unit of volatility. If you would invest  7,525  in iShares MSCI All on May 7, 2025 and sell it today you would earn a total of  855.00  from holding iShares MSCI All or generate 11.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Global X Conscious  vs.  iShares MSCI All

Global X Conscious

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Conscious are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Global X may actually be approaching a critical reversion point that can send shares even higher in September 2025.

iShares MSCI All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI All are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, IShares MSCI may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global X and IShares MSCI

The main advantage of trading using opposite Global X and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, IShares MSCI can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IShares MSCI will offset losses from the drop in IShares MSCI's long position.

The idea behind Global X Conscious and iShares MSCI All pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.